No Income No Assets Mortgage

No-Income No-Assets mortgage, or NINA mortgage, is a type of mortgage program offered by
banks for home buyers who do not wish to prove their incomes. Various banks have different
NINA loan programs. Some NINA stand for No Income Disclosure and No Assets Disclosure
(NID/NAD), which does not require the loan applicant to disclose on the loan application his
income situation, while others are No Income Verification and No Assets Verification (NIV/NAV)
loans, which are basically Stated Income mortgages. In this article, NINA home loans are
defined as No-Income-Disclosure/No-Assets-Disclosure mortgages. For more on NIV/NAV
mortgages, please read the article on Stated Income loans.

NINA mortgages do not require any information regarding the applicant's income and source
of downpayment funds and settlement costs. On the Fannie Mae application form, the
Uniform Residential Loan Application, the sections pertaining to income and assets are left
blank. Underwriting decision is based solely on the applicant's credit profile and the property
value. The time it takes to underwrite NINA mortgages are usually shorter than loan types
that require more documentation.

Banks would verify borrower's employment history with the employer. Although no reference
to income would be made, the lender bank would make sure that the applicant has been
continuous employed for the past two years, and that there is high likelihood of continuous
employment. If the applicant has changed jobs in the past two years, it had better been a
career advancement.

Because lender banks do not examine the borrower's capability to repay the loan and
therefore bear higher default risks, the interest rates of NINA loans are much higher than that
of Full Doc mortgages.

Although banks do not require NINA loan applicants to have perfect credit profiles, borrowers
with blemishes in their credit histories are generally not accepted.

NINA mortgages are often used by home buyers who either have difficulty documenting their
incomes or by those who do not want to disclose their financial situations.